Digital Marketing Saturation and Ad Inflation

What digital marketers aren’t telling you about your online ads.

According to a report published by Global Industry Analysts, the worldwide market for digital advertising and marketing is projected to reach $786.2 Billion by 2026. This is dramatic growth: the market was at $78 Billion in 2016, a ten-fold increase in just ten years.

The obvious first move is to run out and buy stock in Google, Facebook, Linkedin, etc. But, more importantly, what does this trend mean to the average business?

By now almost every business has embraced some level of digital marketing, leaving little doubt that online is the best medium for building your brand and driving net-new revenue.

Even in more established B2B industries, which have relied on word-of-mouth for decades, the balance has shifted online over the last few years. Studies now show that over 70% of business-to-business transactions start with online research first.

So, we can all agree that we need an online presence. But as this spending influx continues, it will drive up the average cost-per-click (CPC) – the amount you pay when a user clicks on your ad – and that can have an impact on your business, and bottom line.

Where does that leave us?

It’s important to understand how CPC inflation and increasing costs occur in online advertising. Everything in paid digital marketing is based on a bidding system. As more players – including your competitors – enter into the bidding system, it results in inflation, the gradual increase of average cost-per-click over time. It means having to spend more per-click just to maintain your average position or impression share.

Navigate the rising tide with a savvy, trusted partner

In the face of rising costs and competition, selecting the right digital marketing partner is more important than ever. A great digital marketer will tell you how they can increase your ROI without spending more money. In fact one of the hallmarks of a great digital partner is someone who will at times tell you where not to spend money.

The right digital partner can help you offset this inflation by knowing how to stretch your advertising spend much further, to ensure your ads are shown to the right audience, at the right time, with the right message. This includes technical optimizations such as audience segmentation, day-parting and device prioritization, search term report auditing, and quality/relevance score enhancement – all of which can all have a massive impact on your return on investment.

Without a partner who understands the nuances and constantly changing dynamics of digital marketing, you may be left with that old traditional advertising feeling of “I know I’m wasting half my money, I just don’t know which half.”

Rocket 55 can help you make sure you’re getting the most return on your digital marketing dollars, today and into the future. Call 612.315.2399 or contact us.